U.S. housing starts slid 2.0% to 1.065 M in January U.S. housing starts slid 2.0% to 1.065 M in January, a little better than expected, following December's 7.1% jump to a 1.087 M clip (revised from 1.089 M), with November bumped down to 1.015 M from 1.043 M previously. Building permits fell 0.7% to a 1.053 M rate from a revised 1.058 M previously (was 1.032 M). Single family starts dropped 6.7% and multifamily starts rose 7.5% last month.

U.S. PPI Preview U.S. PPI Preview: January PPI data is seen down -0.5% (median -0.4%) for the month following a -0.3% decline in December. The core index should be up 0.1% following a 0.3% increase in December. Price data has been depressed lately as collapsing oil prices have weighed on headlines, WTI oil prices plunged -19.4% in January. For the whole story, see our PPI preview.

Treasury Market Outlook: Treasuries extended declines in light trading Treasury Market Outlook: Treasuries extended declines in light trading with many Asian markets closing for New Year and Golden Week holidays. The 10-year yield has risen to 2.16%. Overseas sovereigns declined as well amid hopes Greece will ask for a loan extension by the end of the week, suggesting the government might accept a bailout (which isn't the same thing). U.K. Gilts were the underperformer on strong labor market data. Meanwhile, the BoE minutes showed signs of a division among the 9 voting members. Attention is also turning to the upcoming January 27, 28 FOMC minutes. Many in the markets are looking for a more upbeat assessment in general that could presage Chair Yellen's Monetary Policy Report next week and heighten the risk the word "patient" is removed at the March 17, 18 FOMC meeting, and keep a June rate hike on the table. Today's data includes January housing starts, January industrial production, January PPI, and the December TIC data (which was rescheduled from yesterday). The MBA reported mortgage applications dropped another 13.2% in the week ended February 13. Fed Governor Powell will speak on regulation.

SPDR S&P Oil and Gas Exploration and Production ETF volatility up, WTI at $53SPDR S&P Oil and Gas Exploration and Production ETF overall option implied volatility of 43 compares to its 26-week average of 35 according to Track Data, suggesting large price movement.